Its quarterly net loss widened to 16.3 million U.S. dollars, compared with 6.3 million U.S. dollars a year ago.
New acquisition: Porch announces the acquisition of naming software company Renault, Virginia Beach, Virginia, whose technology is used by property rights agents. Porch acquired Rynoh for a total of 35 million U.S. dollars. It paid $31.5 million in cash at the close. The remaining 3.5 million USD will expire in April 2023.
This is the latest in a series of transactions aimed at expanding Porch’s influence in various regions and household services. Other transactions this year include the acquisition of Homeowners of America, an insurance company headquartered in Irvine, Texas, for $100 million in cash and stock, thereby expanding Porch’s footprint in the insurance technology market.
Board changes: Also on Monday, the porch Appoint two new board members:
- Rachel Lin, Co-founder and managing partner of Imagination Capital, former managing director of Time Warner Investment Group.
- Maurice Turlock, The former group CEO of Aviva plc, a multinational insurance company headquartered in London.
With these appointments, Porch said directors Thomas Hennessy and Margaret Whelan will leave the board. Both have served on the board of PropTech Acquisition Corporation, a special purpose acquisition company (SPAC) that merged with Porch and went public last year.
Business prospects: Porch raised its full-year revenue forecast from 178 million U.S. dollars to 184 million U.S. dollars, which means revenue increased by 155% year-on-year.
Porch CEO Matt Ehrlichman (Matt Ehrlichman) said in an interview on Monday: “We are in the early stages of building this unique company with a unique strategy.” “The business is running well.”
Porch provides enterprise software for home service companies in the fields of house inspection, moving, real estate, and insurance. Companies can pay a recurring fee to use the software, or if they agree to provide Porch with access to information about home buyers, they can use the software for free.
Porch said it uses this information as a strategic advantage to provide concierge services to these buyers when they make major purchase decisions. Porch connects home buyers with moving companies, insurance companies, TV/Internet companies, and others, and charges transaction fees for the sales they make.
In its earnings report released on Monday, Porch said that the average number of companies using its software increased to 17,120 in the second quarter, an increase of 63% year-on-year. Rynoh contributed 1,099 companies. According to Porch, the average monthly revenue of each company has increased to US$999.70, an increase of 80% year-on-year.
In after-hours trading on the Nasdaq on Monday, Porch Group’s share price rose about 3% to $18.70 per share.
PPP loans: exist Submit quarterly report on Monday In cooperation with the U.S. Securities and Exchange Commission, Porch stated that it received full forgiveness for a $8.1 million salary protection program loan from the U.S. Small Business Administration in June. Porch received the loan in April 2020.
Porch became a public company in December and raised $322 million through the PropTech merger and private investment from Wellington Management.
Some companies in the Seattle area, such as Rover, Bardy Diagnostics, ExtraHop, and Amperity, have chosen to repay PPP loans after going public, acquired, or receiving new investment.
In Monday’s earnings report, Porch listed $152.4 million in cash, cash equivalents, and restricted cash as of June 30. As of December 30, this figure was 207.5 million U.S. dollars.